The Central Consumer Protection Authority (CCPA) has imposed penalty of Rs 3 lakh on a leading civil services coaching institute, Sriram’s IAS, for misleading advertisement.

The decision was taken to protect & promote the rights of consumers as a class and ensure that no false or misleading advertisement is made of any goods or services which contravenes the provisions of the Consumer Protection Act, 2019.

Coaching Institutes and online edtech platforms use pictures and names of same successful candidates to influence prospective aspirants (consumers), without disclosing the courses opted by such candidates & length of the course so attended, it said.

CCPA, headed by Chief Commissioner, Nidhi Khare, and Commissioner, Anupam Mishra has issued an order in view of the violation of the Consumer Protection Act, 2019.

In its advertisement, Sriram’s IAS made claims like “200 plus selections in UPSC Civil Service Exam 2022”, “We are India’s No.1 Prestigious UPSC/IAS Coaching Institute”.

CCPA found out that it Sriram’s IAS advertised various types of courses but the information with respect to the course opted by the advertised successful candidates in abovementioned UPSC Civil Service exams results was deliberately concealed in the advertisement.

This has the effect of consumers falsely believing that all the successful candidates so claimed by the Institute had opted for the paid courses advertised by the Institute on its website, it said.

Further, in its response, Sriram’s IAS submitted the details of only 171 successful candidates against its claim of 200 plus selections in UPSC CSE 2022.

Out of these 171 candidates, 102 were from Free Interview Guidance Programme (IGP), 55 were from Free Test Series, 9 were from GS Classroom course and 5 candidates were from different States under the MoU signed between the State Government and the Institute to provide free coaching.

This fact was not disclosed in their advertisement, thereby deceiving consumers.

CCPA said that the majority of candidates had already cleared Preliminary and Mains examination by himself/herself, with no contribution of Sriram’s IAS.

By concealing this important fact, such false & misleading advertisement creates huge impact on those consumers who are UPSC aspirants without letting them know that Sriram’s IAS had offered guidance to only such successful candidates who had already cleared Preliminary and Mains examination of UPSC examination.

Thus, the advertisement has violated the consumer’s right to be informed so as to protect himself against unfair trade practice, the CCPA said.